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Revenue and EBITDA Multiples: The role of comparison in startup valuation

Equidam

Looking at a range of possible multiples (such as EV/revenue , EV/EBITDA , EV/FCF or P/E ), investors can compare the price of equity against revenue performance, financial health, and growth expectations, in an attempt to find under-priced opportunities. In reality, this fails on a number of fronts.

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[PARAMETERS UPDATE P5.8] EBITDA MULTIPLES

Equidam

You can refer to the table below to see how the EBITDA multiples for the industries available on the Equidam platform will change on February 29th, 2024. These are applied to compute the Terminal value in the DCF method with Multiple and the potential exit value in the VC method. Aswath Damodaran of New York University.

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[PARAMETERS UPDATE P5.4] EBITDA MULTIPLES

Equidam

The EBITDA multiples in 2021 not only reached, but much exceeded pre-pandemic levels. It is too early to determine the reasons why the EBITDA multiple for footwear companies surpasses 33X, while the multiple for MedTech firms exceeds 35X. High EBITDA multiples, on the other hand, may be viewed as a way to discount inflation.

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[PARAMETERS UPDATE P5.6] EBITDA MULTIPLES

Equidam

You can refer to the table below to see how the EBITDA multiples for the industries available on the Equidam platform will change on February 23, 2023. These are applied to compute the Terminal value in the DCF method with Multiple and the potential exit value in the VC method. 20.99 ↓ -43% Advertising & Marketing 12.74

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Project Finance vs. Corporate Finance: Careers, Recruiting, Financial Modeling, and More

Brian DeChesare

Because most of these assets are private , finding substantial information for deal discussions can be very difficult. Debt Service = Interest + Scheduled Principal Repayment; CFADS = EBITDA – Cash Taxes +/- Change in Working Capital – Maintenance CapEx +/- various Reserve line items.)

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The 2023 AICPA Business Valuation Conference and One Thought on Valuation Adjustments

Chris Mercer

Assume a company has reported an EBITDA of $2.0 Assume further that the appropriate EBITDA multiple is 6x and that the underlying equity discount rate is 14%. Then, based on reported EBITDA, the company is worth $12.0 Normalized EBITDA is, therefore, $3.0 million based on normalized EBITDA. million (6 x $2.0

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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

Well, the short answer is after that forecast period where we estimate each year’s cash flows then discount them, we add a single number at the end to account for all the theoretical years in the future, called the Terminal Value (TV). Explaining The Terminal Value. How do I calculate the Terminal Value?”